CIG just keeps on going
I first recommended a buy on this stock back in 2011 and then every year since. The beauty is that the company has just kept on going, expanding by making acquisitions and growing organically with the main focus remaining electrification. Not producing but rather enabling the producers to move the electricity around via overhead cables. CIG is also very big in the renewable energy space and recently bought a rail business installing the overhead cables for trains.
Its latest trading update sees headline earnings per share (HEPS ) to be around 135c for the six months to end February, making for a likely 270c for the full year and putting it on a forward price-to-earnings ratio (P/E) of just over 10 times.
What we haven’t seen from the group is a dividend and we’re unlikely to get one at the interim stage, but as it gets larger and more profitable, it is likely to start paying a dividend and CIG has blocked dividends in Angola (from AES) that it can bring out in October 2016. This could see a maiden dividend at the year-end further helping the share price.